JIT Stock Control
• No buffer stocks , components arrive
when needed
• Supplier relationships have to be
excellent
• Production staff must be multi-skilled
and ready to change jobs
• Equipment must be flexible
• Demand forecasts must be accurate
• Latest IT equipment required
• Good employer-employee relationships
• Quality = Priority.
Advantages
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Less capital , lower op cost
Lower costs
Less chances of stock becoming obsolete
Staff motivation
Quicker response time through systems
Disadvantages
• Supply failure = System Breakdown
• Higher delivery costs ( small deliveries )
• Order admin costs
• Lower bulk discounts
• Reliance on outsiders .
Lean Production
• Lean manufacturing or lean production,
is the optimal way of producing goods
through the removal of waste and
implementing flow, as opposed to batch
and queue .
• Quality output with fewer resources .
Simultaneous Engineering
• R&D done simultaneously for new
products.
• New products arrive faster
eliminating the danger of obsolesce
• Unlike sequential engineering .
Flexible Specialisms
• Technology + Changing consumer tastes make
very short production runs
• Quick changes require :
• Flexible Work Contracts
• Flexible machinery
• Flexible Workers
• This leads to quicker response times , wider
ranges , reduced stock holdings and increases
in productivity .
• This is also called time based management .
Kaizen
Kaizen
• Continuous Improvement
• All workers contribute
• Managers DO NOT know best in all
cases
• Small makes big
• Management culture promotes
worker involvement
• Quality cells that are empowered
• All staff are involved
Evaluating Kaizen
• Its limitations include :
• Senior mangers may resist
• Short term tangible costs
• Important advances made only early on
• Some proposed changes may require a
complete overhaul and so may be expensive